Q:

What are Vanguard index funds?

A:

Quick Answer

Vanguard index funds include money market funds, bond funds, balanced funds, stock funds, international funds, sector funds and specialty funds. Some of the names of Vanguard's index funds include Energy (sector fund), Emerging Markets Select Fund (international fund) and Equity Income (stock fund).

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Full Answer

An index fund is a mutual fund that buys all of the securities for a particular index such as the S&P 500. The performance of the index fund will closely match the performance of the index. Index funds have lower management fees because they are passively managed. In 1976, Vanguard launched the first index fund available to individual investors.

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